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State RegulationsMI specificDifficulty 1/5

Michigan's coordination of benefits rules for group accident and health plans exist primarily to accomplish which purpose?

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Answer & full 3-part explanation (select an option above, or peek)

Why B is correct

Michigan's coordination of benefits statute, MCL 550.251-.255, implemented for group accident and health coverage through M.C.L. 500.3402b, allocates payment responsibility among multiple plans so that no claim is paid twice, yet the insured still receives up to what the coordinating plans would owe absent other coverage. It manages overlapping coverage; it does not ban duplicate coverage or fix payment order by policy age.

Why the other options are wrong

  • A) Paying every plan in full is exactly the duplicate payment the coordination statute prevents.
  • C) Multiple group plans are lawful; the rules coordinate them rather than prohibiting overlapping coverage.
  • D) Order of benefits turns on statutory coordination factors, not on which policy was issued first.

Memory hook

COB: one claim, one total — no double dipping.

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